e-district to IPO on AIM

e-district, formerly known as SyNet Communications, was formed by Steve Laitman, the company's chief executive, who developed LeisureDistrict which now has 1.6m registered users in the UK and US who access the service either through their PC or interactive television. LeisureDistrict has achieved over 300,000 of its registered users through WebTV, Microsoft's interactive TV device, and expects this number to increase as digital television becomes a major means of mass distribution of interactive services. Advertising sales, sponsorship and e-commerce transactions are the company's principal source of income.

“LeisureDistrict is a leading interactive family entertainment channel poised to take advantage of the dramatic upsurge in interactive TV in the USA and UK,” said Laitman. “Flotation will provide the funds to drive forward our expansion and to accelerate our programme of forming strategic relationships with key content providers and the owners of mass market delivery systems for interactive TV.”

The company is in talks with a number possible strategic partners, according to Laitman who said that he's seeking alliances with companies who “provide internet access for cable users, or directly with cable providers. The importance is to gain access to mass users.” Other partnerships will be with sponsors, advertisers and content providers.

Laitman is confident that there will be a great deal of institutional interest in the company and also indicated that another round of funding was likely to follow the IPO. “Foresight Technology invested 500,000 in us last March for a 30% stake,” he said. “They stand to make a good return in a very short period of time.”

Ten per cent of the company will be floated when e-district launches its IPO in March, which it said will give it a market capitalisation substantially higher than 100m.